SEZ to accompany new Thailand-Myanmar bridge
The Thai government has allocated an initial budget of Bt300 million to develop a special economic zone in Tak province in line with the beginning of construction on the Thai-Myanmar bridge across the Moei river.
On January 19, the government designated 14 sub-districts in Mae Sot, Mae Ramat and Phop Phra districts as a special economic zone (SEZ).
The SEZ will facilitate the growing border trade between the two countries. Once the bridge is completed, cross-border trade is expected to surge dramatically. More importantly, Mae Sot will be an entrance to an east-west economic corridor stretching about 700 kilometres from Tak to Mukdahan province near the Thai-Lao border.
Thai authorities also plan to provide incentives to local investors in the SEZ. One possible incentive will be is a 10 per cent tax break for the investors. Only businesses that do not benefit from the Board of Investment’s promotional packages will receive tax incentive.
The budget for the development, including the bridge construction, is set at Bt3.9 billion, Bt300 millions of which will be spent during the first phase, according to Thailand’s Deputy Finance Minister Wisut Srisuphan.
Wisut recently led Thai officials to Tak province to inspect the bridge construction at Ban Wang Takhien village in Mae Sot.
“I came to inspect the infrastructure of the area after the government declared the SEZ. Tak province has the basic necessities for the development but we will have to further talk to related agencies such as Agriculture and Resource and Environment ministries. We are ready, and so is the Myanmar side,” said Wisut.
Border trade via Mae Sot totaled Bt60 billion last year, and the trade volume is expected to be double once the bridge is opened. The four-lane bridge will serve the SEZ and relieve congestion on the extant two-lane Mae Sot-Mywawaddy Bridge, which cannot serve heavy trucks.
